If both Real GDP and the general price level fell following the September 11th terrorist attack,

A. the negative aggregate supply shock was smaller than the negative aggregate demand shock.
B. both the aggregate supply shock and the aggregate demand shock must have been, ironically, positive.
C. the aggregate supply shock was negative, but the aggregate demand shock must have been positive.
D. the negative aggregate supply shock was larger than the negative aggregate demand shock.


Answer: A

Economics

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